Merci Grace (ex-Head of Growth at Slack) on PLG, interviewing, storytelling, building a diverse team, hiring salespeople, building a growth team, and much more
Mercy Grace, founder, investor, and former Head of Growth at Slack, shares insights on product-led growth, effective onboarding, and hiring. She discusses how Slack innovated PLG, common mistakes companies make, and strategies for building diverse teams and compelling narratives.
Deep Dive Analysis
16 Topic Outline
Merci Grace's Accidental Path to Product Leadership
Lessons from Venture Capital for Founders
The Art of Storytelling for Business Leaders
Unpacking Slack's Core Identity as a Work Tool
Slack's Pioneering Approach to Product-Led Growth
Key Activation Metrics and Growth Strategies at Slack
Optimizing Onboarding for User Engagement
Common Mistakes in Implementing Product-Led Growth
Identifying When Your Product Is Suited for PLG
Distinguishing Product-Led, Bottom-Up, and Sales-Driven Growth
The Critical Importance of Day Zero Value
Determining the Right Time to Hire Your First Salesperson
Strategies for Hiring and Retaining Amazing Talent
Building a Narrative-Driven Company Culture
When and How to Build a Growth Team
Fostering Diversity in Product Teams
5 Key Concepts
Product-Led Growth (PLG)
A strategy where users can immediately derive value from a tool without needing conversations or webinars, and the product itself drives adoption and expansion.
Bottom-Up Adoption
A growth approach where a product can be adopted by anyone at any level within an organization, not just specific functions or senior roles.
Day Zero Value
The immediate, tangible benefit a user experiences the very first time they interact with a product, which is crucial for retention in product-led models.
Connectors (User Persona)
Individuals within a user base who are naturally more social, enjoy introducing people, and are more likely to invite others to use a collaborative product.
Story-Driven Company Culture
An organizational environment where compelling narratives and context often outweigh raw data or numbers in decision-making and communication.
8 Questions Answered
She learned the critical importance of storytelling for founders and that deal outcomes are often influenced by interpersonal dynamics and personality clashes, not just business fundamentals.
Many people, even internally, didn't realize that Slack was strictly a tool for work and not intended to be a consumer or social product, leading to internal debates about features like blocking.
Slack found that a team needed at least three real human beings and 50 real messages to reach a critical activation point where the product started to take off.
A frequent error is overcomplicating onboarding with too much information, like carousels, assuming users will invest as much attention as the product team does.
A company is ready for a growth team when it feels it has achieved product-market fit, even if imperfect, and can demonstrate that users find value after an initial introduction.
A strong indicator is whether an individual at any seniority level within a function can pick up and use the product without needing buy-in from higher-level executives or integration with sensitive systems.
Founders should consider hiring their first salesperson when they are absolutely maxed out on sales efforts themselves, or when their target customers, particularly in enterprise, expect and want to interact with a salesperson.
Companies should proactively seek out and interview a large number of women, as passive inbound or referrals may yield fewer candidates due to women often being less aggressive or risk-seeking in job applications.
15 Actionable Insights
1. Start Pitches with Action
When telling your story (pitch, blog, conference), start in the middle of the action or with your unique insight to immediately grab attention, like a thriller movie. This is crucial because getting attention is the P0 for any interaction, ensuring your audience stays engaged.
2. Design Product from Onboarding
Think about the user’s first introduction and the steps to full value from the very beginning of product design, rather than treating onboarding as a last-minute addition. This ensures the onboarding experience is deeply intertwined and native to the product, providing a seamless learning curve.
3. Regularly Observe User Onboarding
Schedule monthly sessions to watch real users (or target demographics) sign up and onboard to your product. This “embarrassing but educational” practice reveals the true human experience and helps avoid relying solely on conversion numbers, providing invaluable qualitative insights.
4. Prioritize Day Zero Value
Ensure your product provides immediate, tangible value to users, rather than promising benefits months down the line. Products lacking day-zero value struggle with product-led growth because users will easily churn if they don’t see instant utility.
5. Hire for Company & Role Fit
Approach hiring as a two-way street, aiming to find candidates who will genuinely thrive in your company’s specific culture and the role’s demands. Recognize that success at one company doesn’t guarantee success at another, so focus on fit over a generic “successful PM” profile.
6. Utilize Work Sample Projects
For individual contributor PM roles, assign a project (ideally with choice from multiple problems) to assess a candidate’s thinking, solution quality, communication, and basic technical understanding. This reveals more than traditional interviews and helps identify future high-performers who can deliver technically possible and creative solutions.
7. Invest in Early Diversity
Actively seek out and interview a diverse range of candidates, especially women and people of color, to counteract passive inbound biases and lower conversion rates for earlier/riskier businesses. Early diversity creates a self-reinforcing mechanism, fostering a more comfortable and respectful environment that attracts further diverse talent.
8. Assess Product-Led Readiness Early
Consciously decide if your product can truly be product-led by determining if any individual at any seniority level can pick it up and use it without needing high-level buy-in or access to sensitive systems. This strategic decision should ideally be made before coding begins, as it dictates your growth motion.
9. Simplify Onboarding Drastically
Avoid overcomplicating onboarding with multi-step carousels or extensive informational screens, as users have limited attention and don’t care about your product as much as you do. If your onboarding doesn’t feel like you’re “dumbing it down,” it’s likely too complex.
10. Offer Invites Early & Often
For collaborative or social products, embed opportunities to invite others throughout the entire product experience, not just once. This catches “connector” users who are naturally inclined to share, while allowing others to ignore them without negative impact.
11. Extend Free Trial Periods
Allow users to continue using your product for longer during a free trial, as incrementally more people will convert. User timing for purchase is independent of your schedule, often aligning with their own project cycles or quarterly budgets.
12. Define Core Product Identity
Clearly establish your product’s fundamental purpose (e.g., Slack as a “tool for work” vs. social platform). This core identity provides a guiding principle that simplifies thousands of small product decisions and prevents feature creep.
13. Hire First Salesperson Strategically
Bring in your first dedicated salesperson when the founder is absolutely maxed out on sales activities, or when your target customers explicitly expect and prefer to interact with a salesperson before making a purchase. This indicates a natural pull from the market.
14. Build Growth Team Post-PMF
Start building a dedicated growth team once you have a clear sense of product market fit, even if it’s initially achieved through “white glove” onboarding. A growth team can then accelerate and refine this fit, but a foundational product experience is necessary first.
15. Don’t Replicate Without Context
Do not replicate product features or designs from successful companies without understanding their underlying context or effectiveness. Many seemingly successful features might be based on failed experiments or not even be working for the original company, leading to wasted effort.
5 Key Quotes
No one has built Slack before.
April Underwood
Every pitch should start in the middle of the action like a thriller or like a drama.
Merci Grace
No one cares about your product the way that you do.
Merci Grace
If you don't want to even do three hours of like free work for a company, you probably don't want to work at that company.
Merci Grace
The easier you make it to come in, also the easier it can be to leave.
Merci Grace
3 Protocols
Storytelling for Pitches and Conference Talks
Merci Grace- Start with an outline to clarify the story's arc.
- Begin in the middle of the action, like a thriller, to immediately capture attention.
- Backfill details later, but prioritize getting attention first.
Continuous User Onboarding Research
Merci Grace- Schedule regular sessions (ideally once a month) to talk to human beings.
- Recruit people who fit your user demographic or are existing users.
- Observe them signing up and walking through the product's onboarding experience.
Hiring for Individual Contributor PM Roles
Merci Grace- Give candidates an actual problem to solve, ideally allowing them to pick from a few options.
- Assess the quality of their solutions, ensuring technical possibility and creativity.
- Evaluate their ability to tell a compelling story and structure a narrative around their solution.
- Check if they understand how to measure the impact of their proposed solution.